HBF has today released its 2021 Annual Report, with Australia’s fifth largest health insurer marking its 80th year by looking after its members during COVID-19 and delivering on key strategic initiatives to position HBF for the future.
During the 2021 financial year (FY21), HBF was the first major health insurer to announce the return of surplus funds arising from COVID-19, totalling $41.9 million. Payments to eligible policyholders started in July 2021, with 350,000 electronic payments totalling circa $32.9 million completed and almost 120,000 cheques sent to remaining policyholders whose bank details were not available to HBF. Of those, some 52,000 cheques have now been deposited, totalling approximately $4.1 million.
In addition to supporting its members, HBF progressed its strategy to become a truly national health insurer, achieving net policy growth of 3.7 per cent in FY21 by adding policies in every state and territory across Australia. HBF ended FY21 with over 500,000 policies and a market share of 7.3 per cent, growing market share for the first time in three years.
In FY21 HBF also entered into an agreement to acquire CUA Health Limited, opened its first HBF Dental centres, exited from general insurance, and continued to deliver on a program to upgrade its technology platforms.
Against this backdrop, HBF has reported a net profit of $17.7 million in FY21 (FY20: $30.1 million). This was underpinned by strong investment income of $80.0 million (FY20: $34.7 million), representing a return of 4.5 per cent from an asset portfolio that has almost 75 per cent invested in defensive assets. This was HBF’s best investment return in the past five years – beating both the average RBA cash rate (0.16 per cent) and the inflation rate (3.8 per cent for the 12 months to 30 June 2021) – and offsetting HBF’s ongoing investment in strategic initiatives.
HBF Chief Executive Officer John Van Der Wielen said a continued focus on rigorous financial discipline has enabled HBF to support its members and achieve significant milestones.
“In our 80th year HBF has again shown the value of being a not-for-profit, purpose-driven organisation that focuses on its members and is committed to doing the right thing. I am proud that Roy Morgan’s latest Risk Report found we are now the most trusted private health insurance brand in Australia,” Mr Van Der Wielen said.
“Our rigorous financial discipline has enabled us to deliver on some major strategic initiatives which position us well for the long-term.
“HBF’s national growth strategy, expansion into new health services, and investments in technology are aimed at driving better outcomes for members and enhancing the value of private health insurance.
“We have also been true to our word of not profiting from COVID-19, with around $37 million in surplus funds now paid to HBF policyholders. But we still have some 68,000 policyholders sitting on nearly $5 million and I encourage those members who can safely do so to head to their local bank or post office to cash their cheques.
“These payments were in addition to COVID-19 financial hardship support totalling nearly $5 million and the distribution of 100,000 reusable face masks to members, employees and the wider community in the year.”
HBF maintained a strong payout ratio in FY21, with 89.7 cents per dollar received in premiums returned to members through claims (FY20: 88.6 cents per dollar), and finished the year with almost $2.1 billion in assets, the highest in the organisation’s history which underpins future investment.
Download the Annual Report 2021 (PDF)
Media contact: Adrian Watson, HBF Corporate Affairs, CorporateAffairs@hbf.com.au or 0419 040 807